Changes to 2002 Forms

2002 Updates to Form 100

Revision Date: 04/06/2004Revision Details: Revision of Form 100, Instructions for the Form 100 , Schedule H (100), Instructions for the Schedule H(100), and these forms and instructions for the 2002 Package X.

These revisions are due to the California Court of Appeal ruling that
found the R&TC Section 24402 deduction unconstitutional. This may
increase or decrease the corporate tax liabilities.

The revision is required on the stand alone Form 100, Side 1, line 11;
Form 100 booklet: Table of Contents page 2, Form 100 – page 19, Schedule
H (100) pages 23, and 24; and the Package X, pages 11, 30, and 31.

Form 100, Side 1, line 11:

It should read:

11 Other dividend deduction. delete
"Attach Schedule H (100)"

Form 100 Booklet, Table of Contents, page 2.

It should read:

Instructions for Schedule H (100)…………………………….23

Schedule H (100)

Delete all of Part II - Other Dividends on
form and instructions. Instructions from page 24 moved to this page (see
below), blank page 24.

Forms and instructions impacted by the court
decision in Farmer Bros. Co. v. Franchise Tax Board (2003) have
been revised to disallow any deduction taken based on R&TC Section
24402. In Farmer Bros. Co. v. Franchise Tax Board (2003) 108 Cal App
4th, 134 Cal Rptr. 2nd 390, the California Court of Appeal found that
the R&TC Section 24402 deductible dividend provision discriminated
against interstate commerce in violation of the Commerce Clause of the
United States Constitution. R&TC Section 24402 provided for a
deduction to the extent that the dividend payer was taxable in
California. A statute that is held to be unconstitutional is invalid
and unenforceable. Therefore, the deduction is not available.